MANILA (Mabuhay) – Domestic liquidity (M3) or the money circulating in the financial system grew by 11.5 percent at P8.3 trillion in January 2016 from a year earlier, the Bangko Sentral ng Pilipinas said on Monday.
“On a month-on-month, seasonally adjusted basis, M3 increased by 2.6 percent,” the central bank noted, saying domestic liquidity expanded by 9.4 percent in December 2015.
“Money supply continued to expand due largely to sustained demand for credit,” it said.
Credits to the private sector increased at a faster pace, with the bulk of bank loans going to key production activities that included real estate, utilities, wholesale and retail trade, automotive and motorcycle repairs, manufacturing, and information and communications.
“The continued expansion of domestic liquidity during the month indicates that money supply remains adequate to support economic growth,” the central bank said.(MNS)